In an official statement on April 3, the Huobi cryptocurrency platform stated it had gotten in touch with Gala Games’ legal team and will collaborate with them to sue pNetwork for the release of $1 billion worth of pGALA tokens in order to recover the token’s losses and firmly defend its own integrity as a brand and its users’ interests.
#Huobi & #Gala Games have initiated a lawsuit against pNetwork. Previously, Huobi had provided $pgala users $25 million in cash and equity equivalent compensation, Gala Games will also provide $25 million equivalent in node compensation. @GoGalaGames pic.twitter.com/aePICQ5ATm
— Huobi (@HuobiGlobal) April 3, 2023
Huobi stated that all businesses and individuals impacted by the pGALA incident are welcome to join the class action lawsuit against pNetwork.
This happened after Gala Games, the firm behind the GameFi project, said on March 20 that it had launched a lawsuit against pNetwork, demanding $28 million in compensation on behalf of pGALA hack victims.
The gaming business asserts that pNetwork failed to fix a code misconfiguration, giving the misleading idea of a $1 billion hack and unfairly damaging the market for Gala’s own native token, GALA, as a result of which the project was forced to incur considerable costs.
According to reports, the pGALA problems began when pNetwork worked with hackers to create tokens worth US$ 1 billion on the BNB chain, then withdrew them from the liquidity pool to acquire over US$ 10 million illegally.
Consequently, pGALA tokens’ price plummeted significantly, causing a huge loss for many third parties, including Gala Games and Huobi.
Although pNetwork, the alleged party responsible for the incident, claimed that it would airdrop the 12,977 BNB to affected users, it has not delivered on its promise.
Huobi and Gala Games develop a compensation plan for victims
However, further statements indicate that the cryptocurrency exchange and Gala Games have developed a reimbursement plan for paying up to US$50 million in compensation for victims’ losses on Huobi.
This statement states that Huobi and Gala Games will split the payout. 25 million USD will be provided by Huobi in the form of cash and user benefits, including 15 million USDT and 10 million equity compensation shares in the same amount.
Gala Games will compensate with node licenses valued at US$25 million. The payment arrangement is scheduled to start this week.
Furthermore, the Huobi platform intends to promote the conversion of pGALA into a new token, ROCK (Rock Dao), and be the first to launch it once the conversion is complete. ROCK is a Web3 gaming digital asset launched by Gala Games in partnership with Huobi and TRON.
#Huobi will support the exchange of $pGALA to $ROCK (Rock Dao) & conduct an initial listing after the exchange is completed. On-chain holders need to deposit their $pGALA into Huobi by April 6, 9.30 (GMT+8).#pGALA #ROCK #Web3 #Tron pic.twitter.com/q7T7vGekvi
— Huobi (@HuobiGlobal) April 3, 2023
In order to receive the new token,
“On-chain holders need to deposit their $pGALA into Huobi by April 6, 9.30 (GMT+8).”
